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How-To Guide
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December 2009
Table of Contents
Purpose ........................................................................................................................................... 3
Defining a Budget......................................................................................................................... 13
Changing the Distribution of Budget Amounts .................................................................... 16
Defining Budgets after the Commencement of Activity ....................................................... 18
Printing Budgets .................................................................................................................. 19
Authorizations .............................................................................................................................. 25
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How to Manage Budgets
Purpose
The Budget module helps you manage and track company expenses.
In SAP Business One a budget is based on the data entered, which specifies the maximum amount
that can be allocated to a particular G/L account. You can block the creation of transactions for G/L
accounts that exceed their budget limit.
In the course of routine work, the application checks the debit side of G/L accounts for which a budget
has been defined. If the budget is exceeded, the application either issues a warning or blocks the
action, depending on the chosen setting.
Note
The budget functionality works with calendar months only.
If your company manages a perpetual inventory system, you can use Purchase
Accounts Posting System. This option includes the recording of expense
accounts in journal entries created by purchasing documents that affect the
inventory valuation. You can use the budget functionality to control these
purchase accounts, thus monitoring your expenses in real time.
This functionality can be used in localizations where purchase accounting is used,
selecting this option enables purchase accounting. Once journal entries have
been made, this setting cannot be modified.
To activate the Purchase Accounts Posting System, from SAP Business One
Main Menu, choose Administration → System Initialization → Company Details →
Basic Initialization tab and select the Use Purchase Accounts Posting System
checkbox.
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How to Manage Budgets
2. Under the title For a Document that Deviates from the Budget, choose one of the following
options:
{ Block Deviation from Budget - blocks the creation of transactions that cause the budget
to be exceeded.
{ Warning - in the event that the budget is exceeded, issues an alert, offering you the
option of confirming or canceling the transaction.
{ Without Warning – lets you add transactions without any restrictions. When you choose
this option, the rest of the fields are not displayed.
3. Specify the following data:
Field/Button Activity/Description Comments
For Annual/Monthly Lets you manage your budget on For the annual budget, this
Budget an annual or monthly basis. setting is updated per user.
For the monthly budget, it is
updated for all users in the
company, but only after the
next logon.
Purchase Orders When you issue a purchase order,
the application performs a check
against the budget, including all
open purchase orders and the
current one.
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How to Manage Budgets
Note
You can find this checkbox in Financials → Chart of Accounts → Account Details
pushbutton.
You can manually select non profit-and-loss G/L accounts to be relevant to the
budget by selecting the Relevant to Budget checkbox for each G/L account.
In the course of routine work, when you create a transaction against a relevant-to-budget expense G/L
account, the application executes a check for deviation from the budget, and if the budget is
exceeded, it issues a system message.
If the Purchase Order, Goods Receipt POs, and Accounting checkboxes are selected, the application
performs a check for deviation from the budget during the generation of purchase orders, goods
receipt POs, and A/P invoices.
If the budget is exceeded, the following dialog box is displayed:
If you defined to block transactions that exceed the budget, the application does not add such
transactions and issues an alert to that effect.
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How to Manage Budgets
Note
Budget distribution methods are not relevant for working with an annual.
During the setup of a new company, SAP Business One automatically defines the following 3 common
budget distribution methods:
• Equal –distributes the budget amount equally among the months of the year.
• Ascending Order –distributes the budget amount in an ascending order and is used when you
increase your budget expenses over the months of the year.
For example, in January you use only a small proportion of your budget amount, in February
you increase your expenses, and so on.
• Descending Order - distributes the budget amount in a descending order and is used when you
decrease your budget expenses over the months of the year.
For example, in January you use the largest proportion of your budget amount, in February you
use a little less, and so on.
These methods cannot be revised. However, you can choose to add additional methods as described
in the following procedure.
Procedure
1. From the SAP Business One Main Menu, choose Financials → Budget Setup → Budget
Distribution Methods.
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How to Manage Budgets
Note
You can change the distribution of the budget amounts manually in the Budget Item
Details window. For more information, see Changing the Distribution of Budget
Amounts.
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How to Manage Budgets
Example
This figure illustrates an optimistic scenario versus a pessimistic scenario. Each budget
scenario is assigned to a particular fiscal year.
When you set up a new company, the application provides a default scenario called Main Budget. This
scenario cannot be altered.
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How to Manage Budgets
2. In the Fiscal Year field choose a different fiscal year to display its assigned scenarios.
The options in Fiscal Year are based on the posting periods you set in the Posting Periods
window (Administration → System Initialization → Posting Periods).
Note
You can set a Fiscal Year start for the first day of the month only.
3. To add a new budget scenario row, use one of the following methods:
{ From the menu bar, choose Data → Add Row
{ Right-click in the window and choose Add Row
{ Press Ctrl+I
4. In the Budget Scenarios – Setup window, specify the following data:
Field/Button Activity/Description Comments
Budget Name Specify a name for the budget This name is unique to that
scenario. fiscal year.
Based On Choose the budget scenario on An independent budget
which to base this budget scenario. scenario should be based on
itself.
Initial Ratio (%) Set the percentage of the defined
budget in relation to its base
budget.
Rounding Method Select one of the following The budget amounts are
rounding methods for budget rounded only when the
amounts in the scenario: scenario is created. If you
later define or change a
• No Rounding
budget amount in the base
• Round to Full Decimal scenario, the budget amount
Amount calculated for this scenario is
not rounded.
• Round to Full Amount
For examples, see Appendix
• Round to Full Tens Amount
- Examples of Rounding
Changing the rounding method is Methods.
relevant only when you base your
scenario on a different one. Budget
amounts for independent budget
scenarios are not rounded.
Copy Scenario Opens the Copy Budget Scenarios For information, see sections
window. Importing Budget Scenarios
and Copying Budget
Import Scenario Opens the Import Budget
Scenarios.
Scenarios window.
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How to Manage Budgets
Note
You can update a particular scenario by going to the Budget Scenario Definition
window and entering amounts manually, irrespective of the ratio that has been
defined. For information, see Defining a Budget.
In the course of routine work, deviation from the budget is checked against the
main budget only. The other scenarios are only for reports.
Note
Make sure during the operation that the G/L account codes in the source company match
those in the target company.
1. From the SAP Business One Main Menu, choose Financials → Budget Setup → Budget
Scenarios.
2. To open the Import Budget Scenarios window, choose the Import Scenario button.
Original Data
Choose Company Select the source company from
which to import the source
scenario.
Database Name Displays the database name of the
selected source company.
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How to Manage Budgets
Destination Data
Database Name Displays the database name of the
company you are currently working
in, and into which you are importing
the budget data (cannot be
changed).
Company Name Displays the company name of the
company you are currently working
in, and into which you are importing
the budget data (cannot be
changed).
Destination Scenario Select the target scenario into
which you want to import the
budget scenario data.
3. Choose the Choose Company button to open a corresponding window. Select the required
company database and choose the OK button.
4. Specify the Original Scenario and the Destination Scenario.
5. On the right, select the required G/L accounts. All the G/L accounts defined as Relevant to
Budget are displayed in this list and all are selected by default.
6. To complete the import procedure, choose the Execute button.
Note
To duplicate a budget for the next fiscal year, make sure that the source and target
scenarios have the same name.
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How to Manage Budgets
Original Data
Database Name, Display your current database
Company Name name and company name.
Original Scenario Select the scenario you want to
copy.
Destination Data
Database Name, Display your current database
Company Name name and company name.
Destination Scenario Select the target scenario to which
you want to copy the data from the
original budget scenario.
3. Select the original scenario and the destination scenario of your company.
4. On the right, select the required G/L accounts. All the G/L accounts defined as Relevant to
Budget are displayed in this list and all are selected by default.
5. To complete the copy procedure, choose the Execute button.
Note
To duplicate a budget for the next fiscal year, make sure the source and target scenarios
have the same name.
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How to Manage Budgets
Defining a Budget
Prerequisites
• The Budget Initialization option on the Budget tab under Administration → System Initialization
→ General Settings is selected.
• You have defined the following:
{ Required distribution methods. For information, see Defining Budget Distribution
Methods.
{ Required budget scenario. For information, see Defining a New Budget Scenario.
Procedure
1. From the SAP Business One Main Menu, choose Financials → Budget Setup → Budget.
2. In the Budget Scenario Definition window, choose the required G/L accounts.
The table displays G/L accounts defined as Relevant to Budget in the chart of accounts.
3. In the Scenario field, choose the scenario for which you want to define a budget. For information
about scenarios, see section Using Budget Scenarios.
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How to Manage Budgets
4. Choose the OK button to open the Budget Scenarios - Setup (Scenario - XXX) window.
This window displays G/L accounts defined as Relevant to Budget in the chart of accounts, and
for which an amount was entered in the budget.
Header
Field/Button Activity/Description Comments
Row Details
Field/Button Activity/Description Comments
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How to Manage Budgets
Note
• You display or hide columns in this window by clicking (Form Settings) and
selecting the relevant fields.
• When you create a new budget that includes accounts without previous budget
definitions, the window does not display any accounts. In such a case, select the
Display Accounts with no Budget checkbox.
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How to Manage Budgets
5. For each account, you can change the budget amount, percentage, and distribution method.
You can also change the distribution of the budget amounts manually using the Budget Item
Details window. For more information, see Changing the Distribution of Budget
Amounts.
6. To save your changes, choose the Update button.
Result
The budget is defined for the selected accounts, enabling you to perform an analysis by comparing the
defined budget with the actual business activity.
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How to Manage Budgets
{ The budget amount is distributed among the months according to the selected method.
{ You can manually change the amount for each month.
{ The Header area displays the following data:
Field/Button Activity/Description Comments
Month The month of the year. You cannot edit this field
Local The budget amount in local
currency that was distributed to
each month.
System The budget amount in system
currency that was distributed to
each month.
% The proportion out of the overall You cannot edit this field
budget amount that was distributed
to each month.
For Reconciliation If the total of the % column is not
100, this row displays the amount
remaining to be distributed.
Remarks Specify special remarks for each Note that the remarks are
month, if required. saved per month, so make
sure to click the name of the
relevant month before
entering your remarks.
Update Differences If you change the monthly budget
amounts and, as a result, the total
budget value is not fully allocated,
choose this button to specify the
remaining value in the budget
amount of the last month.
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How to Manage Budgets
Note
If you change the budget amounts manually, the Method column in the Budget Scenarios
– Setup window changes to Man. (manual) and is marked in red in the corresponding
G/L account row.
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How to Manage Budgets
Printing Budgets
SAP Business One lets you print windows, documents, and reports. You can set default print layouts
for budgets.
1. To print budgets, from the SAP Business One Main Menu, choose Financials → Budget Setup
→ Budget.
2. In the Budget Scenario Definition window, select the relevant budget and choose the OK button.
3. From the Tools menu, choose Print Layout Designer, or click in the toolbar.
4. Choose the preferred printing layout.
5. From the File menu, choose Print.
Note
You can edit the default layouts or create new ones by using Print Layout Designer
(PLD). From the Tools menu, choose Print Layout Designer, or click in the toolbar.
For more information about PLD, see the How to Customize Printing Layouts with the
Print Layout Designer document, which you can download from the documentation area
of the SAP Business One Customer Portal at
http://service.sap.com/smb/sbocustomer/documentation.
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2. If you are working with a multiannual company, choose the desired fiscal year.
3. Specify the following data:
Field/Button Activity/ Description Comments
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How to Manage Budgets
Header
Field/Button Activity/ Description Comments
Row Details
Field/Button Activity/ Description Comments
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How to Manage Budgets
5. To access different levels of detail in the report, click and choose the desired level at
the bottom right field.
Example
Select 1 to display only the drawers, or select the highest level number to display all your
G/L accounts, down to the active G/L accounts.
7. In the Chart Style field, select a graph display. The graph options are as follows:
{ Line Graph
{ Draw Line Graph
{ Bar Graph
{ Spline Graph
To print the graph with the Budget report, select the Print Graph checkbox.
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How to Manage Budgets
3. In the Budget Report window, from the Tools menu, choose Print Layout Designer, or click
in the toolbar.
4. Choose the preferred printing layout.
5. From the File menu, choose Print.
Note
You can edit the default layouts or create new ones by using Print Layout Designer
(PLD). From the Tools menu, choose Print Layout Designer, or click in the toolbar.
For more information about PLD, see the How to Customize Printing Layouts with the
Print Layout Designer document, which you can download from the documentation area
of the SAP Business One Customer Portal at
http://service.sap.com/smb/sbocustomer/documentation.
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How to Manage Budgets
No Rounding 13.78
Round to Full Decimal Amount 13.80 Round to the nearest tenth.
0.05 or above is rounded to the next
tenth.
Below 0.05 is rounded to the previous
tenth.
Round to Full Amount 14 Round to the nearest whole number.
0.5 or above is rounded to the next whole
number.
Below 0.5 is rounded to the previous
whole number.
Round to Full Tens Amount 10 Round to the nearest 10.
5 or above is rounded to the next 10.
Below 5 is rounded to the previous 10.
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How to Manage Budgets
Authorizations
For information about the authorizations required to manage budgets, see the online help for SAP
Business One and the document How to Define Authorizations in the documentation area of SAP
Business One Customer Portal at http://service.sap.com/smb/sbocustomer/documentation.
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How to Manage Budgets
1. Go to https://www.sdn.sap.com/irj/sdn/businessone.
2. Under BUSINESS ONE KNOWLEDGE CENTER, click the link of the SAP Business One
release version you want.
3. Click the SDK Help Center link.
4. In the File Download window, do one of the following:
{ To open the .zip file, choose the Open button; then extract the REFDB.chm file to your
computer.
{ To save the .zip file to your computer, choose the Save button. You can open the .zip file
and extract the REFDB.chm file later.
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How to Manage Budgets
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